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Pembridge Resources (PERE) Shares Spiked 72.8% Higher on Upgraded Minto Mine Estimates.

Simon Mugo trader
Updated 12 May 2021

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Shares of Pembridge Resources PLC (LON: PERE) spiked 72.8% higher after publishing the preliminary assessment technical report for its Minto mine.

Some of the report’s highlights include extending the mine’s life by four years, doubling its total life expectancy to 8 years. Total production expected to come in at 10.89 million tonnes of the mine’s total resource estimate of 24.1 million tonnes.

The miner is expected to produce 38 million pounds of copper annually worth $40 million starting 2021 up to 2025.

Pembridge’s net present value (NPV) is pegged at $84 million based on average copper prices of $3.10 per pound. However, the company’s NPV skyrockets to $256 million when using flat copper prices of $4.50 per pound, much closer to current prices.

The costs incurred by the company during the production (C1 cash Cost per lb of Copper) is US$2.20. In contrast, the All-In Sustaining Cost (AISC) per lb of Copper throughout the mine’s lifetime comes in at $2.65, leaving the firm with significant margins at current copper prices.

Investors cheered today’s report, as evidenced by the massive spike in Pembridge’s stock price.

Pembridge’s CEO and Chairman, Gati Al-Jebouri, said: “The Technical Report prepared by JDS confirms our expectations for the Minto life of mine as well as the potential for further development.  The embedded value of Minto is now clearly identified, and the Minto team is very excited to realise and grow this value for all the Minto stakeholders.”

Pembridge Resources share price.

IG chart of Pembridge Resources share price 12-05-2021

Pembridge Resources shares rallied 72.85% to trade at 12.10p rising from Monday’s closing price of 7.00p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading